Bitcoin tumbles as Chinese exchange bans

bitcoin-bBitcoin price plunges by 8% to trade below US$3,500 after Chinese local cryptocurrency exchange announced that it will stop trading on the 30th of September.

China’s Bitkan said it would suspend its over-the-counter (OTC) bitcoin and bitcoin cash trading services from Thursday. Traders seem confused. BTCC was not banned by the government. They closed down voluntarily.

Chinese government is launching a crackdown on exchanges turns into action by the authorities. Beijing has already decided to ban initial coin offerings which is a move mark a clampdown on cryptocurrency in the world’s second largest economy.

Bitkan’s announcement followed the Chinese central bank’s recent decision to ban fundraising through digital currencies, branding it as illegal.

Leonhard Weese, president of the Bitcoin Association of Hong Kong, said if China continues to toughen up on regulations to restrict growth in bitcoin, it will be the loser as marking activity comes from Hong Kong.

While the Indian Reserve Bank said, Any user, holder, investor or trader dealing with virtual/ fiat cryptocurrencies is doing it at their own risk.